Page 4 - FSUOGM Week 46 2022

FSUOGM COMMENTARY FSUOGM

Russian fossil fuel exports

slump in October

The EU may be preparing to ban Russian crude oil and oil products, but this

will not stop Russian crude being processed in Turkey, with the end products
finding their way into Europe

RUSSIA RUSSIAN fossil fuel exports slumped in October deliveries from the country that is due to come
to their lowest level since the start of Moscow’s into force on December 5. This drop is particu-
WHAT: invasion of Ukraine, a Finnish think tank has larly pronounced in shipments from Russia’s Bal-
Revenues were down estimated. tic Sea ports, which primarily go to the European
7% month on month in Revenues came to €21bn ($22bn) in October, market.
October. Finland’s Centre for Research on Energy and “There is no sign of a last-minute flurry to
Clean Air (CREA) said in research published secure supplies from Russia,” the centre noted,
WHY: on November 16. This was down 7% month adding that “easing fossil fuel demand in Europe
Until now, high prices had on month, with declines seen across all fossil and uncertainty around the specifics of the oil
offset drops in volumes. fuel commodities except LNG, where revenues price cap are likely contributing to softening
increased 9% month on month.. Out of this sum, exports and export prices.”
WHAT NEXT: €7.5bn were exports to the EU, with that market “Many tanks departing Baltic ports take a
The extent that Turkey seeing its lowest share on record, with the decline month or more to reach their destination. Russia
will serve as a gateway led by a 9% drop in crude oil receipts. is putting as much oil at sea as possible given the
for Russian oil product “The sharp increase in fossil fuel prices significant increase in shipments without desti-
supplies into Europe will caused by Russia’s blackmail and other disrup- nation, suggesting that it is already struggling to
be important. tions due to the war have buoyed the country’s find new buyers due to the upcoming sanctions
revenue until now, although earnings have been lacklustre global economy and possibly beefing
falling month-on-month since March,” CREA up floating storage in the hope of finding ways
said in a statement. to sell it without being affected by sanctions and
According to the centre, oil shipments out bans,” CREA said. “We don’t observe a major
of Russia are declining and oil is building up in increase in oil exports to the Pacific markets,
tankers ahead of the EU’s ban on seaborne crude highlighting that Russia has little to no capacity

P4 www. NEWSBASE .com Week 46 19•November•2022